Is Big Data the Answer to the Housing Inventory Shortage?

We’ve all heard about inventory shortages in California and for those of you selling in the most desirable areas in the state you are experiencing it firsthand.  So how do you get the lion’s share of the limited inventory? SmartZip Analytics suggests it might be time to get that advantage with big data analytics.

With record low housing inventories, finding homeowners that are in a position to sell (and may not even know it yet) has become critical to the success of real estate agents, not to mention the housing market as a whole. Many homeowners aren’t aware of the rapid shift in the market, and others are still leery about what is ahead. “Low inventory is causing the housing market to stutter,” says Avi Gupta, President and CEO of SmartZip. “Buyers are out there, but sellers are hiding. We help real estate agents identify the most likely sellers in their local communities.”

SmartTargeting gives real estate agents a unique advantage in their local markets. Once an agent selects their desired territory, SmartZip’s big data and predictive engines crunch thousands of historical and current data points across each home and homeowner in the territory to pinpoint the top 20% seller prospects. On average, SmartZip-identified prospects have more than twice the likelihood of selling their home than normal. “I was shocked at how quickly I got results,” says Janine Stevens of Windermere Real Estate, a top producing real estate agent in Palm Springs, CA. “I have been marketing to my territory for a long time, and I have never had a response like this. These targets are really motivated.” Shortly after launching SmartTargeting, Stevens found herself in three listing appointments.

For a real estate agent, doubling their odds of getting a listing can translate to a huge competitive edge and thousands of commission dollars. By targeting SmartZip-identified home seller prospects, SmartZip’s current client base has early visibility into nearly $ 30 billion in projected total annual home sales volume, which translates to about $ 1 billion in potential commissions. And while this number is large, it represents only 3% of the total national home sales, placing SmartZip in an enviable position to continue its growth trajectory.

Do you think SmartZip Analytics could help you with inventory shortages? We’d love to hear your thoughts!

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